FEBRUARY 11, 2019
ORLANDO, FL
Navigating Patient-Centric
Financing Options
www.HIMSSConference.org
#rethinkRCM
Navigating Patient-Centric
Financing Options
Tim Donovan
CMO
The Challenge
Patient-Driven Payment Landscape
The Patient as Payer
The Solution
Third-Party Financing for Healthcare
The Challenge
Patient-Driven Payment Landscape
Patients are Paying More Out-of-Pocket
Increasing Insurance Premiums – for employer-sponsored individual coverage
increase in the past five years
1
28
%
increase in the past 10 years
1
74
%
Patients are Paying More Out-of-Pocket
of U.S. adults who have employer
sponsored insurance coverage now have
a deductible – up from 59% in 2008
1
85
%
of covered employees have a
deductible of $1,000 or more –
up from 20% in 2013
2
58
%
$1,573
average deductible
in 2018
1
$735
average deductible
in 2008
1
Increasing Deductibles
Providers are Working Harder to Collect Less
of providers say the amount that goes
uncollected is their biggest concern related
to billing and collections
3
53
%
of providers say it takes
a month or more to
collect balances due
4
13
%
of billing is never collected, on average,
and has to be written off
5
73
%
The average unexpected
major medical expense
was
$
1,200
Worst-case Scenario:
Cost as a Barrier to Care
5
40% of Americans say they could
not cover an unexpected expense of
Worst-case Scenario: Cost as a Barrier to Care
27
%
of U.S. adults went
WITHOUT some form of
medical care in 2017 due to
an inability to pay
5
without borrowing money
or selling possessions
5
$
400
The Patient as Payer
Researching, communicating, booking,
and paying online
Price transparency and comparison
shopping
Integration of technology, seamless
online-offline continuity
High expectations for patient
experience, satisfaction (including
payments)
Patients are Approaching
Healthcare as Consumers
Realist
High Expectations
Digital Natives
Optimistic
Collaborative
Confident
Tech Savvy
Independent
Free Agents
Experimental
Inventors
Hard Working
6
Gen Z
1995 - 2004
Millennials
1983 - 1994
Gen X
1965 - 1982
Boomers
1946 - 1964
6
Generations Defined
Generational Differences
Technology
Millennials more likely to search
online for healthcare information
and use sites like WebMD and
Wikipedia, use online payment
portals, and consider telehealth
services vs. older consumers
7
Referrals
Millennials are more likely than
Generation X or Baby Boomer
patients to ask family members or
colleagues for input on healthcare,
and much more likely to consult
their friends
7
Payments
Fewer than half of Gen Z consumers
have a credit card (43%), and only 55%
anticipate having one in the future.
However, 61% use PayPal, and 21% use
peer-to-peer payment apps like Venmo
and Cash App
6
Members of different generations have distinct habits and expectations related to healthcare.
of Millennials aged 25-34
say they have declined
treatment not covered
by insurance.
8
29
%
of Millennials aged 25-34 say
they have delayed elective
treatment due to cost.
8
48
%
Cost Barriers are Affecting
Younger Generations
The Solution
Third-Party Financing for Healthcare
• Quicker payment with less effort
• Some solutions are non-recourse
• Save time on billing and
collections
Third-party Financing: A Win-Win
A Solution for Providers
Third-party Financing: A Win-Win
• Option to pay over time
• Can move forward with care
or treatment without delay
• Promotional financing can
help with budget
A Solution for Patients
*Subject to the representations and warranties in the CareCredit Agreement with Participating Providers, including but not limited to only charging for services that have been completed or that
will be completed within 30 days of the initial charge, always obtaining the patient’s signature on in-office applications and the cardholder’s signature on the printed receipt.
** Subject to credit approval
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1. Kaiser Family Foundation, “Employer Health Benefits 2018 Annual Survey,” Sep. 2018
2. Kaiser Family Foundation, “Employer Health Benefits 2018 Annual Survey, Summary of Findings”
3. CareCredit, “Healthcare Payments Benchmark,” Aug. 2018
4. InstaMed, Provider Healthcare Payment Survey 2017, conducted by LHK Partners.
5. Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2017, May 2018
6. CareCredit, Understanding Generation Z Study, June 2018
7. CareCredit Generational Health Research Study, Q3, 2018
8. CareCredit, Understanding Gen Z Research, March 2018
9. CareCredit, “Cardholder Engagement Study,” Q2 2018
10. CareCredit, Provider Impact Study, Q2 2018
Sources:
Disclaimers:
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